WKN USA, a subsidiary of German-based WindKraft Nord (WKN), is looking to expand its successful strategy of develop-build-sell to also retain ownership interests in projects it develops, says Florian Zerhusen, CEO of the company. As such, the developer has retained San Diego-based RA Capital Advisors to explore strategic options.
WKN USA currently has more than 1,100 MW in development. The company developed and constructed the 63 MW Snyder Wind Farm in Texas for Enel North America. The project is notable for its 105-meter hub height – the only project in the U.S. with this size meter – according to Zerhusen.
WKN USA has a number of projects that are construction ready and under negotiation for a power purchase agreement. Further, Zerhusen says, ‘putting those projects on our balance sheet will provide us with additional options to grow.’ The company plans to take advantage of the Section 1603 cash grants before they expire on Dec. 31.
Though Zerhusen believes the mergers and acquisitions are beginning to heat up, he is willing to wait for the right deal.
‘This is not an auction process,’ he says. ‘If the right partner comes along, we will act immediately.’
Keeping the options open between a develop-sell and owning-operating model will reap the rewards, says Zerhusen.
On average, the returns for owning wind projects are similar in amount to those that utilities receive, he explains. ‘Develop and sell has arguably the highest margin,’ he says. ‘Considering a mix of both will provide you with the broadest options and assures ongoing positive cashflows.’
Siemens AG, via its Siemens Project Ventures unit, owns a 25.1% stake in BGZ Beteiligungsgesellschaft Zukunftsenergien AG, the sole shareholder of WKN.
